US Allows Nvidia, AMD to Resume Chip Sales to China
(MENAFN) Two of America’s leading semiconductor companies, Nvidia and AMD, have reportedly reached a financial agreement with the US government regarding their business operations in China, according to a Sunday article by a news outlet.
As per the report, the two companies will now allocate 15% of their revenue generated from chip sales in China to the US government.
In return for this arrangement, Washington will issue export licenses allowing Nvidia to sell its H20 chips and AMD to distribute its MI308 chips in the Chinese market — a notable departure from previous policy.
This decision follows a period of heightened tensions related to Nvidia’s H20 chip exports.
In April, the US administration enforced a restriction on Nvidia, prohibiting the sale of H20 chips to China.
At that time, the government stated that an export license would be needed “for the indefinite future” to sell the components in question.
However, that stance was unexpectedly reversed last month, with the administration pledging to eliminate the licensing limitations.
This policy reversal coincided with allegations from Chinese authorities, claiming that Nvidia’s H20 processors contained advanced tracking features, location detection capabilities, and the potential for remote shutdown.
In response, Nvidia firmly rejected these accusations.
The company insisted that its chips do not possess any “backdoors or kill switches.” Nvidia's Chief Security Officer, David Reber, reaffirmed the company’s position in a blog post, writing, “NVIDIA GPUs do not and should not have kill switches and backdoors.”
Despite this, a Chinese state-run media outlet labeled the H20 chip as unsafe in a Sunday report and urged domestic consumers to refrain from purchasing AI chips specifically designed for the Chinese market.
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